Inside Italy's Gift Card Market: 2026 Outlook

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I remember receiving a plastic card at a Christmas party years ago and wondering if it would still work years later. That curiosity turned into a short investigation when I started tracking gift card rules and market shifts across Italy. In this piece I report the essentials: the legal fine print, why digital cards are racing ahead, and what 2026 looks like for retailers and consumers alike.

Snapshot: What Gift Cards Look Like in Italy (Types & Uses)

When I look at Italy’s gift card market heading into 2026, I see a simple idea getting sharper: gift cards are prepaid payment instruments—issued as Physical gift cards or digital options—with a fixed or sometimes rechargeable value, used to buy goods or services from a merchant or a payment network.

Closed-loop gift cards: the Italian mainstream

Closed-loop gift cards work only at one retailer or a defined group of stores (think a fashion chain, a beauty brand, or a local boutique network). They dominated Italy’s market in 2024 with 68.1% share, and I expect that strength to carry into 2026 as digital delivery boosts their promotional reach.

Marco Rinaldi, Payments Analyst at MilanoPay: "Closed-loop cards remain a strategic margin tool for retailers—it's where personalization shines."

I once used a closed-loop card for a boutique experience and noticed the card unlocked small extras—early access to a sale and a “cardholder-only” bundle. That’s the closed-loop advantage: retailers can tie the card to loyalty, offers, and higher-margin private-label products.

Open-loop gift cards: prepaid cards with broad acceptance

Open-loop gift cards function more like prepaid Visa or Mastercard products. Instead of being tied to one brand, they can be used wherever the network is accepted, making them a practical choice for people who want flexibility or for companies that don’t want to guess an employee’s favorite store.

Formats you’ll actually see: plastic, vouchers, and Virtual gift codes

• Physical gift cards: plastic cards presented at checkout.

• Scratch-code vouchers: paper cards with a hidden code.

• Virtual gift codes: immediate-delivery codes sent by email, SMS, or stored in an app wallet (digital adoption is rising fast, with a 12.87% CAGR).

How Italians use them: personal gifting and corporate incentives

In-store, I typically just present the card (physical or digital) and the purchase is deducted from the balance. Online, I enter the code (often with a PIN) during checkout; on platforms like Amazon, I can add the credit to my account before buying.

Use cases span:

• Birthdays, holidays, and last-minute gifts

• Corporate bulk issuance, employee benefits, and sales incentives

• Loyalty rewards and targeted promotions

Validity, expiry, and top-ups in Italy

If no expiry is stated, validity can run up to 10 years from issue under standard provisions. Merchants may set an expiry if it’s clearly shown and reasonable (often 12+ months); some, like Daniela The Revolution annual cards, are valid through 2026. Some cards are fixed-value prepaid, while others allow top-ups, so I always check terms and balance tools before I spend.

How They Work: In-Store vs Online Redemption

In-store redemption: plastic card or Digital gift cards on your phone

In Italy, redeeming in a physical shop is still the simplest flow. I just hand over the plastic card, or I show a barcode/number from my phone. The cashier scans it or types it in, and the purchase total is deducted from the remaining balance. This works for both closed-loop cards (one brand) and open-loop cards (network-based, like prepaid cards).

One detail I always watch: if my purchase is higher than the balance, I’m usually asked to pay the difference with cash or another card. If it’s lower, the leftover stays on the gift card.

Online redemption: E-commerce gift cards and Virtual gift codes at checkout

Online, the process is more “form-based.” During checkout, I enter the Virtual gift codes in a dedicated field, often with a PIN. The site applies the credit instantly and updates the order total. On major platforms, the common practice is an account top-up: I add the gift card credit to my profile first (Amazon-style), then spend it later without re-entering the code.

Elena Bianchi, E-commerce Director at RomaRetail: "Digital codes cut friction during checkout—it's a no-brainer for online-first shoppers."

This matches what I’m seeing in the market: online distribution channels are outpacing physical channels, and digital redemption workflows reduce checkout friction—when they’re designed well.

My test: fast redemption, but balance tools matter

I tested a digital code redemption on mobile. It was faster than in-store because there was no waiting for a cashier—just copy, paste, confirm. But it only felt “safe” because the issuer offered a clear balance page right after redemption. Without that, it’s easy to worry the code didn’t apply.

Balance checks and security basics

• Balance checks: most issuers provide a web portal, app, or customer service line. I verify the remaining amount after big purchases.

• Security: PINs and dedicated redemption fields reduce accidental misuse and help prevent random code guessing.

Edge cases: partial payments, returns, and refunds

• Split payments: common online and in-store when the gift card doesn’t cover the full basket.

• Returns: refunds often go back to the gift card balance (or account credit), not to cash.

• Expiry rules: merchants can set an expiry if clearly stated; if none is stated, validity is typically 10 years under standard provisions.

Legal Essentials: Validity and Regulations in Italy

Italy gift card market: the 10-year default I always flag

When I track the Italy gift card market, the first legal point I check is validity. In Italy, gift card expiry is generally read through the Consumer Code and the Civil Code. If a gift card does not show an expiration date, the standard rule applies: 10 years of validity from the date of issue. For consumers, this default is a strong safety net, especially as Gift card adoption rates keep rising in 2026 for both personal gifting and corporate rewards.

Dr. Lucia Moretti, Consumer Rights Lawyer: "The 10-year default gives consumers protection, but the fine print still matters—always read the expiry terms."

Merchant-set expiry: allowed, but it must be clear and reasonable

Merchants can set an expiration date, but only if it is clearly indicated in the terms and on the card or digital voucher. In practice, many issuers choose 12 months or more. I see this as the real-world tension: the law offers a long backstop, yet the checkout page often shows shorter timelines. If the expiry is hidden or confusing, that’s where disputes start.

Not cash: a credit document with limits after expiry

Legally, a gift card is not cash; it is a document containing a credit toward goods or services. Once it expires, the merchant can usually refuse acceptance. That said, refunds can still come into play. In some cases, the issuer may be required to return the remaining balance, but it depends on the contract terms, the consumer’s rights, and how the program is structured.

Regulatory Push Cashless: EU instant payments and cross-border use

The Regulatory Push Cashless at EU level matters here. With the EU instant payments mandate targeted by 2025, I expect faster corporate bulk issuance (think: real-time top-ups, payroll-style incentives, and immediate digital delivery). This also connects to cross-border demand: about 50% of Italian consumers engage in cross-border shopping, which makes clear expiry rules and transparent balances more important for cards used outside Italy.

Practical checks I recommend before you buy or redeem

• Confirm expiry at purchase/receipt and save the T&Cs (PDF or screenshot).

• Use it promptly to reduce risks like store closures or lost credentials.

• Check balance via issuer site/app before checkout, especially for online orders.

2026 Market Trends & Forecasts: Numbers I Track

When I track the Italy gift card market, I don’t rely on a single headline number. I collate multiple studies and build a realistic range for 2025–2030, because forecasts can swing widely depending on what’s counted (retail-only vs. broader prepaid, B2C vs. B2B, and whether open-loop is fully included).

Market Size Forecast: the range I use (2025–2030)

The most common baseline I see values Italy’s market at USD 6.70B in 2025. A conservative Market Size Forecast then points to USD 9.78B by 2030. But I also track higher-end estimates—some research stretches the 2030 outcome as high as USD 40.86B, which usually reflects broader definitions and different data sources.

Market growth CAGR: why the spread matters

For Market growth CAGR, I keep a band rather than a single point: most studies land between 5.5% and 15.6%. That’s a big gap, but it’s consistent with what Alessandro Ferri, Market Research Lead at EuroPayments, told me:

Alessandro Ferri, Market Research Lead at EuroPayments: "Divergent forecasts exist because methodologies vary, but the direction is clear—digital and closed-loop innovations will shape the next five years."

Digital gift cards: the faster lane

Across forecasts, Digital gift cards are typically modeled to grow faster, around 12.87% CAGR. I link that to simple drivers: more e-commerce, more remote work gifting, and smoother checkout flows. EU instant payments and high smartphone adoption also act as structural tailwinds, making digital delivery and redemption easier.

Closed-loop gift cards vs. open-loop: share vs. usage

Segment data is one of my key checkpoints. In 2024, Closed-loop gift cards held about 68.1% share—showing the strength of retailer and brand ecosystems. At the same time, open-loop is often described as the largest by usage because it works anywhere the payment network is accepted. My takeaway: open-loop wins on flexibility, while closed-loop is frequently the fastest-growing due to loyalty, promos, and private-label strategies.

Corporate signals I watch

• PostePay: about 7.2M Evolution cards in the market, a scale indicator for prepaid adoption.

• Carrefour: targeting 40% private-label penetration in food sales by 2026, which can lift closed-loop incentives and gifting.

• Cross-border shopping: roughly 50% of Italian consumers engage, supporting multi-merchant and digital redemption behavior.

Practical Tips: How I Use and Recommend Gift Cards

Gift card adoption rates: what I do before I buy or redeem

As gift card adoption rates rise in Italy, I treat every card like a small contract. First, I check the terms at the moment I receive it (or at checkout if I’m buying). Under Italian rules, if no expiry is stated, the default validity is 10 years from issue. But many merchants set a shorter, clearly stated deadline—often 12 months or more—so I look for the date on the card, the email, or the issuer’s FAQ.

Use promptly, especially with digital delivery and contactless payment solutions

I like digital cards because they work smoothly online and in-store, including via contactless payment solutions when the card is stored in an app or wallet. Still, I use them quickly. Even with legal protections, closures, lost emails, or misplaced codes create real headaches. My rule: redeem within a week for small amounts, and within a month for higher values.

• In-store: I present the physical card or barcode; the cashier deducts the amount from the balance.

• Online: I enter the code (and PIN if required) at checkout, or add credit to my account on platforms like Amazon before buying.

Balance checks: my low-friction habit

After any “big” purchase, I do a quick balance check on the issuer website or app. It takes 30 seconds and prevents awkward surprises at the register. I also screenshot the balance page for my records.

1. Open issuer site/app

2. Enter card number + PIN

3. Save remaining balance

Corporate bulk issuance: real-time delivery after 2025

For employers, corporate bulk issuance works best when distribution is instant. With EU instant payments targeted for 2025 implementation, I recommend platforms that can issue codes in real time—useful for bonuses, sales incentives, and last-minute recognition.

Giulia Romano, Head of Corporate Benefits at NordWork: "Real-time issuance is a game-changer for corporate gifting—employees expect immediate, usable incentives."

Closed-loop cards for promotions and loyalty layering

When I want a targeted outcome, I choose closed-loop cards. A boutique card I used recently unlocked a members-only offer at checkout—proof that closed-loop can add promotional value on top of the stored credit.

My record-keeping checklist

• Keep receipts, emails, and codes/PINs in a secure folder

• Label cards by expiry date

• Treat higher-value cards like cash equivalents

Sector Impact: Retail, E-commerce, and Corporate Use

Retail: promotions, loyalty, and closed-loop strength

From what I’m seeing across Italy, retail remains the most lucrative gift card segment going into 2026, helped by better promotions, app-based wallets, and faster checkout tools. The market still leans heavily toward closed-loop cards—68.1% share in 2024—because they keep spend inside the brand and support higher margins through private-label strategies.

Carrefour is a clear example of how retailers are treating gift cards as part of the core basket strategy, not just a seasonal add-on. The company is also pushing private-label penetration, with a 40% food sales target by 2026.

Marco De Santis, Head of Retail Innovation at Carrefour Italia: "Private-label strategies and gift card integration are central to our 2026 retail mix."

E-commerce gift cards: the fastest distribution shift

E-commerce gift cards are the primary expansion engine, and online distribution is outpacing physical channels as smartphone adoption and digital payments become routine. Digital cards are rising at a 12.87% CAGR, and the user experience is simple: online shoppers enter a code (often with a PIN) at checkout, or add credit directly to an account on platforms like Amazon.

In-store use is also getting smoother. Whether the card is physical or digital, the cashier deducts the value from the balance, which makes gift cards a practical prepaid tool for everyday categories like grocery, entertainment, and hospitality.

Corporate and the Incentive card market: bulk issuance goes mainstream

In 2026, I expect the Incentive card market to keep expanding as companies standardize bulk issuance for employee rewards, sales incentives, and customer retention. Instant-payment infrastructure makes distribution faster, while open-loop options (Visa/Mastercard-style) give recipients more flexibility than single-merchant cards.

Platform-led growth: PostePay as a cross-sell engine

PostePay shows how platforms can scale adoption and cross-sell financial services. With 7.2 million PostePay Evolution cards, the ecosystem supports prepaid behavior and makes it easier to bundle gift cards, top-ups, and digital wallet features in one place.

Omnichannel commerce, ESG, and personalization

I argue that Omnichannel commerce strategies will integrate gift cards as both sales drivers and loyalty tools—usable online, in-app, and in-store with one balance. ESG is also shaping product design: plastic-free virtual codes, lighter packaging, and personalized gifting flows are becoming real differentiators. Buyers still need to check terms, though: if no expiry is stated, validity can run 10 years, but merchants may set a clear, reasonable deadline (often 12+ months).

Wild Card: Hypothetical Scenarios and Creative Angles

Cross-border shopping meets instant payments

I keep coming back to one “what if”: a gift card that works across the EU as smoothly as it does at home. With EU instant payments targeted by 2025, the rails are lining up for near-real-time settlement. Pair that with the fact that ~50% of Italian consumers engage in Cross-border shopping, and the product idea almost sells itself.

Imagine buying a digital gift code in Milan and redeeming it in Paris or Berlin without friction—no manual currency steps, no delayed authorizations, no “this card is not valid in your country” message. In practice, it could look like a network gift card that behaves like an open-loop prepaid instrument, but with merchant-funded perks layered on top.

Closed-loop wallets with ESG-linked Gift Cards

Another scenario: closed-loop cards evolve into loyalty wallets that bundle rewards, receipts, and impact. Each redemption could trigger an ESG credit—say, plant-a-tree per redemption—and the customer sees the impact in the same place they check balance and expiry.

Sara Vitale, Head of Sustainability at GreenPay: "ESG-linked gift cards turn spending into measurable impact—consumers notice when brands back sustainability with action."

This fits how gift cards already work in Italy: they’re prepaid credit documents, usable online via code and PIN or in-store at the till, with expiry rules that must be clear and reasonable. The creative twist is making the “extra” benefit visible and verifiable, not just a marketing line.

Multi-currency cards for tourists (and a footfall play)

Now picture a major retail chain in Rome issuing Multi-currency cards that are rechargeable. Tourists load EUR, GBP, or USD, then spend in-store or online. For the retailer, it’s a way to pull spending forward and reduce checkout friction. For travelers, it’s a simple budgeting tool that feels safer than cash and easier than juggling multiple payment apps.

• Retail upside: higher footfall, higher basket size, repeat visits to use remaining balance

• Consumer upside: quick gifting, easy balance checks, fewer FX surprises

Instant gratification is real—and measurable

On a personal note, I once gifted a digital card and the recipient used it within 24 hours. That speed matters. If redemption is immediate, the card feels less like “stored value” and more like a nudge to buy now—especially online, where applying credit is often just entering a code at checkout.

Personalization vs privacy: the collision point

If gift cards become richer data sources—who gifted, what was bought, where it was redeemed—personalization gets powerful fast. But it also raises privacy risk and reputational exposure. Even a simple rule like recommend based on redemption history can feel intrusive if users don’t understand what’s tracked. These hypotheticals are where regulation, technology, and expectations may collide in 2026.

Conclusion: My Takeaway and What to Watch in 2026

Italy Gift Card Market: from “nice gift” to retail and corporate tool

My takeaway from the Italy Gift Card Market is simple: gift cards are no longer just a last-minute present. They are becoming a strategic instrument for retailers, marketplaces, and employers—especially as digital delivery gets easier and consumers expect to spend seamlessly online and in-store. The market numbers support that shift: a common estimate puts Gift Cards Valuation at USD 6.70B in 2025, with a projection of USD 9.78B by 2030. At the same time, Gift Card Forecasts vary widely, with CAGR ranges cited from 5.5% to 15.6%, so I’m treating growth as real but uneven across sectors.

Regulation helps, but vigilance still matters

Italy’s rules give consumers meaningful protection. If no expiry is stated, the default validity is 10 years from issue under standard provisions tied to the Consumer Code and Civil Code. Merchants can set an expiry date, but it must be clearly shown and generally reasonable (often 12 months or more). Still, a gift card is not cash; it is a credit document. If it expires, a merchant may refuse it, and refunds can be complex. That’s why I keep coming back to basic habits: read the terms, keep receipts, and use cards early—especially to reduce risks tied to store closures or lost codes.

The three levers I’m watching: digital, closed-loop innovation, instant payments

In 2026, the most important gift card trends will be driven by digital adoption, closed-loop innovation, and omnichannel integration. Digital cards are forecast to grow faster (a cited 12.87% CAGR), while closed-loop products already dominate, with a 68.1% share in 2024. I expect more “smart” closed-loop cards that connect to loyalty, targeted offers, and app-based balance tracking.

Federica Gallo, Retail Strategy Consultant: “The next phase of gift card growth will be defined by platforms that weave payments, loyalty and sustainability into a single user experience.”

What I expect next—and who I’ll track

My 2026 outlook includes more personalization, more ESG-linked options, and continued e-commerce-led growth. I’ll also watch how instant-payment infrastructure in Europe (moving into full effect by 2025) changes issuance and corporate adoption speed. On the business side, PostePay is a key bellwether, with 7.2 million PostePay Evolution cards, and Carrefour is worth tracking as it targets 40% private-label penetration by 2026. Through 2026 and beyond, I’ll be following adoption rates, platform partnerships, and how quickly gift cards become a default benefit—not just a seasonal purchase.